GFGCF meeting: Pakistan calls for resolution of developing countries’ issues

ISLAMABAD: At the Group of Friends for Green Climate Fund (GFGCF), Pakistan has called for an early resolution of issues pertaining to developing countries related to the Direct Access Entities, besides focusing its efforts on building capacities of developing countries to develop robust and bankable projects.

The group convened its first meeting of 2023 on 31st March 2023 in Seoul which was co-chaired by Pakistan and the United Nations.

Addressing as the co-chair of the Group for 2023, Ambassador of Pakistan to South Korea Nabeel Munir called for raising ambition on adaptation, mitigation and means of implementation to ensure that the rapidly rising temperatures could be arrested to slow climate change.

“We have reached a point in human history where if we do not act now and raise our ambition in light of the principle of “equity and common but differentiated responsibility”, the future of the planet is, to put it mildly, uncertain,” he said.

It is; therefore, critical that climate change negotiations achieve balanced and significant progress across all issues, including adaptation, mitigation, loss and damage, and most importantly means of implementation, i.e., Technology Development and Transfer, Capacity Building and Climate Finance, he added.

Ambassador Munir said that the Green Climate Fund (GCF) has a privileged position within the global climate finance architecture to play a catalytic role. It is after all an operating entity of the Financial Mechanism of the United Nations Framework Convention on Climate Change (UNFCCC), he further stated.

Since its inception, he added that the GCF has committed around US$12 billion to 216 projects in developing countries, increasing resilience of around 900 million people.

He added that the total climate finance mobilized, including co-financing, presently stands at around $45 billion. The Fund has also done critical work to institutionalize key policies and processes. Benefits like higher-quality funding and readiness proposals are also being realized, he added.

This year, he stated that the GCF Board should make an effort to align the Updated Strategic Plan for 2024-2027 with the Governing Instrument of the Fund in a way that can further clarify operational priorities addressing the needs of developing countries.

“This is also an opportunity to address other key issues, inter alia, the growing perception among developing countries that the project appraisal and approval cycles are bureaucratic and lengthy,” he said.

He further stated that it is also important for the Fund to review its accreditation priorities with a view to targeting Direct Access Entities’ capacity-building for country-owned project development and implementation.

As a developing country, he added that Pakistan wants to see early resolution of issues pertaining to developing countries related to the Direct Access. “We also want the Fund to focus its efforts on building capacities of developing countries to develop robust and bankable projects,” he further stated.

He said that Pakistan is eagerly looking forward to seeing progress on GCF’s second replenishment process, especially at the upcoming second consultation meeting, planned for 27-28 April, and the Pledging Conference in October.

“We hope that the second replenishment of the Fund will be a success, and our developed country partners will commit sufficient financial resources, enabling the Fund to deliver on its mandate. It would also be a great trust builder, as we go to Dubai for COP 28,” he added.

The GCF, being the largest climate fund in the world, was established in 2010 by the member states of the UNFCCC, as an operating entity of the Financial Mechanism of the UNFCCC.

The mandate of the fund is to promote a paradigm shift towards low-emission and climate-resilient development pathways by providing support to developing countries to limit and reduce their greenhouse gas emissions (mitigation) and to adapt to the adverse impacts of climate change (adaptation).

Since its inception the fund has committed around $12 billion for 216 projects in developing countries, increasing resilience of around 900 million people to the adverse impacts of climate change.

Since its inception, Pakistan has maintained a proactive engagement with the Fund.

So far, Pakistan’s two direct access accredited entities: JS Bank Limited and National Rural Support Programme are accredited with GCF under its direct access modality.

To support development of institutional and project development capacity of the Government, to date the fund has approved readiness support worth US$4.6 million for six readiness activities in the country.

The GCF has also approved four projects in Pakistan totalling financing around US$ 131 million (out of which US$ 85.3 million is in grant finance).

The details of the approved projects are: i. Scaling-up of Glacial Lake Outburst Flood risk reduction in Northern Pakistan (GLOF-II) - US$ 37.5 million in grant finance.

ii. Green BRT Karachi -US$ 37.2 million highly concessional loan and US$ 11.2 million as grant finance.

iii. Transforming Indus Basin with climate resilient agriculture & water management - US$ 35 million in grant finance.

iv. Pakistan Distributed Solar Project (JS Bank project) - US$ 10 million (9 million equity, 1 million grant finance).

Copyright Business Recorder, 2023